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Feb 14, 2000
Knoll, Abbott likely to be affected by NPPA decision
The prices of formulations using ibuprofen and erythromycin are likely to be reduced. The price rise is expected to be in the range of around 20%.
The NPPA was set up in 1997 as the official body to administer the Drug Price Control Order (DPCO). It announces price revisions almost every month. Most of the times the recommendations do affect the multinational pharmaceutical companies since they are the ones which have a relatively higher proportion (anywhere between 45-60%) of the revenues accruing from products under price control.
The companies affected are Abbott Laboratories, Knoll Pharmaceutical, Hoechst Marion Roussel, and Alembic Chemicals. Abbott Laboratories is the market leader in the erythromycin segment with a market share of 35% plus. Similarly Knoll derives more than 20% of its revenues from Brufen (its ibuprofen based formulation) and is a market leader in the segment.
The formulation prices are being reduced on the basis of the fact that the bulk drug prices of the respective formulations have dropped.
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